Hospital to save $15M by refinancing

North Valley Hospital is refinancing

about $25 million worth of debt incurred during the construction of

the hospital through the use of tax-exempt bonds. The financial

move will allow to hospital to retire its debt five years sooner

and save nearly $15 million.

North Valley is moving the loan from

out of state to three local banks. The Montana Facility Finance

Authority has approved a request by the hospital to issue

tax-exempt bonds which will be purchased by Glacier Bank, First

Interstate Bank and Rocky Mountain Bank.

Normally, these financing arrangements

are used to fund initial construction. North Valley, however, is

using the opportunity to lower debt costs. The savings will be used

to bring new and improved services to the North Valley campus.

“This is a win-win situation for

everyone,” said Jason Spring, North Valley Hospital CEO. “With

interest rates declining, it makes perfect sense to refinance. The

fact that we can convey a sizeable opportunity to our local banks

means that we can also benefit our local community.

“The savings that the hospital can

enjoy over time will allow us to bring additional needed health

services and maintain the wide variety of financial and in-kind

support we provide to other area nonprofits and community

organizations.”

Last year, North Valley realized more

than $19M in charity care, other uncompensated health care,

contractual discounts and community health care education, support

and funding. The hospital and its outreach clinics are also one of

the largest employers in the Whitefish area with 339 employees.

Local financial institutions will have

obvious benefits from the refinancing plan.

“Glacier Bank working together with

First Interstate Bank, Rocky Mountain Bank and the Montana Facility

Financing Authority is very pleased to have an opportunity to work

with North Valley Hospital to refinance its facilities,” said

Dennis S. Beams, executive vice president of Glacier Bank. “North

Valley Hospital provides world-class service and we’re proud to

work with this outstanding organization for the betterment of the

community.”

David Dittman, president of First

Interstate Bank in Whitefish, added, “We are extremely pleased to

take part in the cooperative effort to assist North Valley Hospital

in its mission of providing first-class health care in this

competitive environment.

The North Valley Hospital facility and

their other properties in Whitefish, Columbia Falls and Eureka will

be mortgaged to secure the bonds.

The 82,352 square-foot North Valley

Hospital opened in 2007. A $30 million mortgage loan to finance

construction was approved in 2005 by the Department of Housing and

Urban Development.